Question

True or false? the patient should be given a receipt for payments on account even if the account is not paid in full.

Answer 1

True

Receipt and payments account is a real account just like cash account. Its prepared at the end of the year. All receipts are recorded on the debit side and expenses on the credit side. It is basically a summary of cash book, it records all cash transactions of all nature revenue and capital.

What is receipt and payment account ?

Receipts and payments accounts are created using a simple form of accounting that summarises all monies received and paid via the bank and in cash by the charity during its financial year, along with a statement of balances.

• The difference between receipts and payments represents the balance of cash in hand or at bank (or bank overdraft at the closing date). Income and expenditure account: The difference between income and expenditure represents either surplus or deficit balance.

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